I'm on the board of a non-profit, and we have employees. They have asked for their Christmas bonuses to be recorded as "tips."

Legally, they're not tips since they're not paid by customers, so the answer is no. It's not that much money, so I grossed the tips up and pay the tax for them. Happy employees.

There is very rarely overtime, but if they work over 40 hours in a week or 8 hours in a day, I'll tell the payroll service to record it correctly.